In a major victory for consumer rights, the Gurgaon Consumer Commission has heavily penalised the Big Pitcher restaurant in Sector 29 for levying an unauthorized 10 per cent service charge on a bill that included an unannounced charge for a beer tester. The consumer court ordered the restaurant to refund the service charge with interest, pay Rs 15,000 in compensation, and provide Rs 11,000 to cover litigation costs.
The ruling, delivered on June 2 by a bench comprising presiding member Sanjeev Jindal and members Jyoti Siwach and Khushwinder Kaur, strongly condemned the establishment’s billing practices as both a deficiency of service and an unfair trade practice.
The Spark: An Unexplained Bill and a Charged Beer Tester
The dispute began on May 15, 2024, when the complainant and his friends visited the Big Pitcher outlet located at Trilium Avenue in Sector 29, Gurugram, expecting a transparent and quality dining experience.
However, the dining experience took an unexpected turn when the bill was presented. To the complainant’s astonishment, the invoice was issued under the name Pankaj—a person completely unknown to the dining party.
Upon closer inspection of the Rs 1,236 bill, the group discovered they had been charged a 10 per cent service charge. Adding to the friction, this service charge was applied to a bill that included a charge for a beer tester. The restaurant staff had failed to inform the patrons beforehand that the beer tester was chargeable.
Despite the complainant immediately raising these concerns and pointing out that the charges violated national consumer protection guidelines, the restaurant management refused to resolve the issue, prompting the customer to seek legal redress.
Violation of CCPA Guidelines
In its official ruling, the Gurgaon Consumer Commission did not hold back, explaining that the restaurant’s actions constituted a direct breach of established consumer guidelines.
The commission stated that the restaurant had not only failed to provide proper service but had also engaged in unfair trade practices. The bench noted that these actions were in direct violation of the Central Consumer Protection Authority (CCPA) guidelines under Section 18(2)(1) of the Consumer Protection Act.
The commission highlighted the CCPA guidelines issued on July 4, 2022. According to these regulations, restaurants are strictly prohibited from charging consumers anything other than the menu prices of the food items and the applicable government taxes. Any additional automated levies, such as mandatory service charges, are explicitly classified as unfair trade practices under the Consumer Protection Act.
The Verdict and Financial Penalties
Finding the restaurant guilty on both counts of deficient service and unfair trade practices, the commission accepted the customer’s complaint with costs.
Under the terms of the order, Big Pitcher must:
- Refund the illegally levied 10 per cent service charge from the Rs 1,236 bill along with accumulated interest.
- Pay Rs 15,000 as compensation to the complainant for the mental agony and harassment caused.
- Pay Rs 11,000 to cover the consumer’s litigation expenses.
